What Do You Know about Secured Credit Cards?
Contributed by Stephanie Litaker
Is a secured credit card for you?
Have you been told you will never qualify for an unsecured credit card but you can receive a secured credit card? Are you unsure why you will only qualify for a secured credit card? And are you wondering what a secured credit card really is? Well, if you have any of those questions floating around in your head and you can't find the answers you're looking for, you have found the right place to be.
This brief article will help you understand the in's and out's of secured credit cards, why they're right (or wrong) for you, and other things you should be aware of when obtaining a credit card - secured or not.
The definition of a secured credit card
When a company offers you a secured credit card, they are essentially asking you to give them money to hold on to, and they'll give you a credit card to use. Often times, your credit limit will be equal to, or less than, the amount of the deposit you gave them, ensuring that if you don't pay your credit card bill, they will still have the money you owe them - it was your deposit.
A secured credit card can give you the opportunity to either improve your credit record if needed, or give you the chance to actually build a credit record if you don't already have one. A secured credit card will look and function the same as an unsecured credit card, so nobody except you will know that your credit card is secured.
